Bitcoin is accepted by over 100,000 merchants and now in the U.S. bitcoin is making its way into real estate transactions. From home purchases to land and condos, bitcoin is finally getting used as currency for buying into real estate.
The younger, newer generation, loaded with cash, want to use bitcoin for transactions. It only makes sense since there is savings on transactions leading all the way to the real estate purchase. Due to demand, many real estate brokers have to explore this option as a payment method.
One developer is hoping bitcoin will give him an advantage in selling his condos. One thing for sure, bitcoin users will generally be the next generation with smart homes and condos. Bitcoin is another kicker in closing the deal. In addition to a younger generation, foreigners with unstable currencies utilize bitcoin to hold on to their money.
Not everyone is willing to accept bitcoin as a payment though. It’s been on a wild ride up this year and the scene is set for a correction. Some sellers are requesting bitcoin currency to be converted to cash. Others don’t mind using bitcoin and plan to hold them. Certainly, those who accepted and held on to their bitcoin as recently as one year would have been rewarded with a very nice capital gains.
Like all transactions, using bitcoin for real estate requires a third party. Many states have licensed brokers who act as the middle man for buyers and sellers. Coinbase, Bitpay, among others, are the middle men in these transactions. All it comes down to is a simple QR code or those jumbled letters that form an address for that transaction. Like lottery numbers, the chances of a repeat code are very slim. The difference is when a transaction is complete, the code expires.
Cryptocurrency lacks regulation and this is what makes many uneasy about using it. It can be used to launder money or send money outside the country.
The IRS treats bitcoin like any other investment and capital gains is taxed when the seller sells the bitcoin and converts it to cash much like a stock, bond or real estate. In the case of investors who have made money on the currency, it is hard to track if someone is actually paying capital gains tax since there is no way to track transactions like a stock brokerage does.
Most people are still paying for real estate in the standard way. But as bitcoin gathers acceptance as a payment method, you will see more and more bitcoin acceptance everywhere.
Internation buyers are more acclimated to bitcoin. Dubai has accepted bitcoin for real estate as a standard for sometime. And people from countries with less stable currency have been using bitcoin to get the most for the money. In the U.S., bitcoin has a way to go, but from recent history, it’s getting there one day at a time.